Company Strategy, formerly known as MicroStrategy, has announced a significant $4.2 billion raise through its new perpetual preferred stock program STRD. This move, led by Michael Saylor, aims to strengthen Bitcoin accumulation strategies.
Strategic $4.2 Billion Raise via STRD Program
Strategy announced a $4.2 billion raise through its new STRD perpetual preferred stock program. The issuance will be carried out via an "At The Market" (ATM) approach, which will allow the company to adapt its sales volumes based on market conditions. Key features of this issuance include the targeted amount of up to $4.2 billion, a fixed annual yield of 10%, and the planned use of proceeds for Bitcoin acquisitions and general corporate needs.
Pause in Bitcoin Purchases
In a separate statement, Strategy confirmed pausing its Bitcoin purchases from June 30 to July 6, marking the first interruption since the previous pause between March 31 and April 6. Currently, the company holds 597,325 Bitcoins worth over $65 billion. The average acquisition cost for this reserve is $70,982 per Bitcoin, with the total investment amounting to approximately $42.4 billion.
Long-term Strategy and Company Plans
Strategy continues to implement its "42/42 Plan," aiming to raise $84 billion by 2027. This purchase pause may indicate a desire to await better market conditions or complete new capital raises. In any case, the launch of the STRD program shows that the company remains committed to its long-term Bitcoin strategy.
Thus, Strategy is taking significant steps to strengthen its position in the cryptocurrency market, adapting its strategies to shifting economic conditions while remaining one of the largest institutional Bitcoin holders.
